The costumes are also top-notch.
I would also say that pretty much any scene with Palpatine is great. Ian's a fine actor who seems to be providing his own direction. Watching his perfomance in "Phantom," it makes me feel like he's almost in a different and better film then the rest of the cast.
I also sometimes think that the "Phantom Menace" is a great metaphor for America (and even the World's) current political climate. We all think we know who the "enemy" really is, but the truth may be worse than we can imagine.